On Sept. 17 JLARC staff presented planned study questions and timelines for seven tax-preference performance reviews the legislature directed JLARC to perform in 2026. The Citizens Commission for the performance measurement of tax preferences schedules reviews and JLARC will report preliminary results in July 2026 and proposed final reports in December 2026.

Pete Van Moorsel summarized the seven reviews: a sales-and-use tax exemption for server equipment and eligible power infrastructure at data centers in counties with population over 800,000 (King, Pierce, Snohomish); a B&O and public-utility-tax credit for contributions to Main Street programs; a B&O tax credit for contributions to the Equitable Access to Credit Program; a sales-and-use tax exemption for certain large private airplanes sold to nonresidents; a sales-and-use tax exemption for equipment used to process landfill biogas into renewable natural gas; a sales-and-use tax exemption for automotive adaptive equipment purchased by disabled veterans or service members (where eligibility is tied to a federal VA grant); and a real estate excise tax exemption for certain transfers of residential property by legal representatives of persons with developmental disabilities to qualifying non-profits.

Van Moorsel stressed JLARC’s statutory review framework: for each preference staff will identify the public-policy objective, estimate beneficiaries and tax revenue effects, assess economic impacts, compare other-state treatment, and include racial-equity considerations. Some preferences include legislatively specified evaluation metrics—for example, the data-center preference requires assessment of capital investment, jobs, and state and local tax revenue attributable to data-center investments. For the veterans’ vehicle equipment preference JLARC staff said they will compare the number of VA-approved adaptive-equipment grant applications (a federal data point) with state tax-exemption claims to see whether eligible veterans are claiming the exemption.

Committee members asked several clarifying questions. Representative Scott asked whether racial-equity metrics might include environmental impacts for data centers; staff said they will attempt to describe workforce and local population demographics for data-center locations but that environmental impacts may be outside the review’s scope given time constraints and that a separate Department of Revenue work group is addressing data-center issues including environmental effects. Senator Wagner asked whether VA grants fully cover equipment costs and how that might affect state tax-exemption use; staff said they will investigate whether federal reimbursements cover sales tax or reduce take-up of the state exemption.

JLARC staff encouraged stakeholders and committee members to participate in the Citizens Commission review hearings and said the commission will accept public testimony. Staff will return with preliminary findings in July 2026 and proposed final reports in December 2026.

Less-critical detail: some preferences limit annual claims per claimant or in aggregate (examples: Main Street credits limited per business and per community; equitable-access credit program limited to $8 million in total credits per year).